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Green Driver State Incentives in Utah

Utah offers numerous green driver incentives to entice locals to adopt eco-friendly driving habits, such as driving an alternative fuel vehicle (AFV) like electric cars or hybrids. These perks include emissions test exemptions, high occupancy vehicle (HOV) lane access for clean fuel vehicles, fuel efficient auto insurance discounts, State and federal tax incentives, grants, loans, and more.

These driver incentives and related green vehicle laws are subject to change. Keep up with the latest by referencing this page as well as periodically consulting your local Division of Motor Vehicles (DMV) branch and the Alternative Fuels Data Center.

Utah Emissions Test Exemptions

Among all fuel-efficient vehicles, Utah only exempts low-speed vehicles from emissions testing. In fact, according to the DMV, the State requires alternative fuel vehicles such as diesel-powered and electric vehicles (EVs) to undergo an emissions test as a condition of UT vehicle registration and registration renewal.

Your vehicle's model-year and the county in which it is registered determine whether needs an emissions test. Typically, all vehicles 6 years old (model-years) and older (up to 1967) require an annual emissions test. However, there are exceptions and additional requirements. For more info, consult our green vehicle laws page and the State's resources on vehicle safety and emissions inspections.

If your vehicle needs an emissions test, find the nearest inspection station using the locator widget at the bottom of this page.

High Occupancy Vehicle (HOV) Lane Access for Clean-Fuel Vehicles

Drivers of vehicles that meet certain clean-fuel and emissions standards (listed below) may use Utah's Express Lanes—otherwise known as high occupancy vehicle lanes—as a single occupant, provided they have a Clean Fuel Decal and Permit. These qualifying vehicles include:

The Utah Department of Transportation issues the C Decal and Permit to randomly chosen applicants. UDOT retains qualifying applications on a wait list, and retains unselected applications for future drawings.

Although UDOT prefers drivers to apply online, you can also download a printable PDF of the application. For further details, refer to the C Decal Permit page and FAQs, or call (801) 887-3790.

Utah State and Federal Tax Incentives

Utah and the federal government offer tax credits as an incentive to entice drivers to go green. Read on to determine your eligibility.

Federal Tax Credits for Fuel-Efficient Vehicle Owners

Federal tax credits offer new fuel-efficient car buyers yet another reason to switch to eco-friendly vehicles. You might qualify for tax credits offered by the federal government if you purchase:

  • Electric cars (EVs).
  • Hybrids.
  • Plug-in hybrids (PHEVs).
  • Diesels.
  • Alternative fuel vehicles (AFVs).

To find out if you're eligible, check out fueleconomy.gov.

Utah Clean Fuel Vehicle Tax Credit

Utah taxpayers who buy qualifying eco-friendly vehicles can take advantage of a nonrefundable Clean Fuel Vehicle Tax Credit against one of the following:

  • State individual income tax.
  • Corporate franchise tax.
  • Fiduciary tax.

The following tax credits are for the taxable year in which the taxpayer either bought the vehicle or the conversion equipment is installed. For vehicles purchased/converted after January 1, 2014 - December 31, 2014, consult the Clean Fuels Program. If you have a vehicle purchased/converted after January 1, 2015, keep reading.

Tax Credit for Vehicles Purchased/Converted After January 1, 2015:

The Clean Fuel Vehicle Tax Credit is equal to the following amounts for vehicles bought or converted after January 1, 2014:

  • Qualifying new electric vehicles and hybrids—$1,000 (original purchase).
  • Original equipment manufacturer (OEM) compressed natural gas (CNG) vehicles—35% of the vehicle purchase price (up to $1,500).
  • Converted vehicles*—50% of the cost of conversion equipment (up to $1,500).
  • Special mobile equipment converted to clean fuels—up to $1,000 (Clean fuels include propane, natural gas, and electricity.).

*Utah added a new provision regarding motor vehicle conversion: As long as the conversion satisfies Utah Code (Section 19-1-406), you may be eligible for the Clean Fuel Tax Credit.

To take advantage of the Clean Fuel Vehicle Tax Credit, first ensure that the vehicle or special equipment for which you are claiming the tax credit falls in line with the requirements of Utah Code (Section 59-7-605 or 59-10-1009). Then read through and complete Form TC-40V. Here, you'll find more details on required documentation and specific instruction on moving forward with your tax credit. Keep in mind, you must complete one form per vehicle you claim, and you may only take the credit once per vehicle.

Refer to the Clean Fuels Program online or call (801) 536-4136 if you have questions.

Fuel Tax Exemption

Utah exempts the following alternative fuel types from State fuel taxes when used to power a motor vehicle:

  • Electricity.
  • Propane.
  • Compressed natural gas.
  • Liquefied natural gas.
  • Fuel derived from UT solid hydrocarbons.

Note that sales and use taxes might still apply even when the State grants a fuel tax exemption. Consult the government's fuel tax FAQs page for further details.

In cases where the Navajo Nation has already taxed the fuel, the State grants a tax reduction. For specifics, consult Utah Code (Title 59, Chapter 13, Section 301).

UT's Clean Fuel Vehicle Grant and Loan Program

Utah's Clean Fuels and Vehicle Technology Grant and Loan Program typically awards $500,000 in grants and $200,000 in loans to help local businesses and government entities to cover the:

  • Cost of converting vehicles to run on cleaner-burning fuel.
  • Cost of retrofitting vehicles with verified technologies.
  • Incremental cost of buying an original equipment manufacturer (OEM) clean vehicle.
  • Cost of refueling equipment for a business or government vehicle.
NOTE: The Utah Division of Air Quality has completed the selection process regarding 2013-14 applications. However, keep tabs on the loan program for future years. Start by looking through a sample application, guidance document, and program guidelines

Auto Insurance Discounts for Eco-Friendly Driving and Green Vehicles

Some Utah auto insurance providers offer insurance discounts for having green driving habits and/or driving a fuel-efficient vehicle. Consult your car insurance company about potential green vehicle discounts such as:

  • Hybrid auto discounts.
  • Alternative fuel vehicle (AFV) discounts.
  • Economy car discounts.
  • Low-mileage discounts.
  • Pay-as-you-drive discounts.

Auto insurance discounts vary by provider and circumstances. For example, you might receive a 10% discount on car insurance for owning or leasing a hybrid car, while maintaining low mileage can earn you up to a 30% auto insurance discount.

If your current UT auto insurance carrier doesn't reward eco-friendly driving, find one that does. Compare auto insurance rates online and save some green for going green.

Find a Nearby Utah Emissions Testing Station

Locate the closest UT smog and emissions testing station with the widget below:

Please enter your ZIP code OR city and state abbreviation


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